NEW YORK, Jan 19 — The dollar held firm against its rivals yesterday and was poised for its first weekly gain in five weeks, boosted by optimism about trade talks between China and the United States. US Treasury Secretary Steven Mnuchin discussed…
KUALA LUMPUR, Jan 18 — Persistent buying momentum in index-linked counters helped push Bursa Malaysia to close firmer today in tandem with the rally in global equities, boosted by positive market sentiment amid optimism over the US-China trade…
LONDON, Jan 15 — Spluttering noises from Germany and an earnings miss from banking giant JP Morgan dragged back stocks today, while Britain's pound hovered near a two-month high ahead of a crucial parliamentary vote on Brexit. Most European…
KUALA LUMPUR: Malaysia’s equity and foreign exchange markets have begun their uptrend, albeit at a slow pace, tracking the positive sentiment, globally, and the trend is likely to continue next week, according to economists. The FBM KLCI gained 11.05 points or 0.66 per cent to close at 1,678.88 on Thursday and rose 4.34 points on […]
KUALA LUMPUR, Jan 13 — Malaysia’s equity and foreign exchange markets have begun their uptrend, albeit at a slow pace, tracking the positive sentiment, globally, and the trend is likely to continue next week, according to economists. The FBM…
FBM KLCI to test 1,700-point level next week
KUALA LUMPUR: The FBM KLCI is likely to test the resistance level of 1,700-point next week with outlook hinges upon progress of the trade discussion between the US and China.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said remarks from the two world’s largest economies would be closely scrutinised in the run-up to their meeting at the end of the month.
According to news reports, Chinese Vice-Premier Liu He would likely visit Washington on Jan 30 and 31 for further trade talks.
“Based on the interest rate futures, it appears that the market has been expecting no hike in the Federal Fund rate this year. Therefore, should the positive sentiment continues, the FBM KLCI might increase towards the resistance level of 1,700 points.
“However, technical indicators such as stochastic is lingering at overbought position. This signals the FBM KLCI is still fragile in the immediate terms,“ he told Bernama.
For the week just ended, the FBM KLCI was traded mostly higher, mainly influenced by external factors such as US Federal Reserve’s dovish stance on interest rate hikes and the potential US-China trade negotiations.
On a Friday-to-Friday basis, the benchmark FBM KLCI settled 13.44 points higher at 1,683.22.
The FBM Emas Index appreciated 205.01 points to 11,618.03, the FBMT100 Index increased 177.88 points to 11,501.22, the FBM 70 soared 567.58 points to 13,591.38, the FBM Emas Shariah Index improved 210.56 points to 11,567.47, and the FBM Ace expanded 163.67 points to 4,458.10.
Sector-wise, the Finance Index bagged 173.84 points to 17,415.63, the Industrial Products and Services Index eased 0.76 of-a-point to 164.87, while the Plantation Index was 236.74 points higher at 7,117.64.
On a Friday-to-Friday, the weekly turnover almost doubled to 14.17 billion units worth RM11.30 billion against 7.22 billion units worth RM4.79 billion.
Main Market volume increased to 10.41 billion units valued at RM10.59 billion versus 5.17 billion units valued at RM4.37 billion.
Warrants turnover advanced to 1.90 billion units worth RM368.88 million from 1.23 billion units worth RM282.94 million.
The ACE Market volume appreciated to 1.85 billion shares valued at RM341.04 million against 719.60 billion shares valued at RM127.20 million.
The gold futures contract on Bursa Malaysia Derivatives is expected to be lower next week, as weak market sentiment would limit any price upside potential, said a dealer.
The local gold market is expected to be quiet as most investors have shifted their investment from safe-haven assets to equities, he said.
“We expect there will be no positive catalysts to boost the gold market as optimism over further trade talks between the US and China has improved risk appetite, making bullion less attractive.
“With the ringgit expected to increase further, the demand for gold will be decreasing,” he told Bernama.
On a Friday-to-Friday basis, spot month January 2019 went down 40 ticks to RM170 a gramme, February 2019 fell 36 ticks to RM170.20 a gramme, while March 2019 and April 2019 deducted 28 ticks each to RM170.70 and RM170.80 a gramme, respectively.
Weekly turnover was four lots worth RM68,140 from five lots worth RM85,420 in the previous week, while open interest rose to 23 contracts versus 19 contracts last week. — Bernama
KUALA LUMPUR, Jan 11 ― The ringgit closed marginally higher against the US dollar today on stronger buying interest following newly-released data which showed better industrial output in November last year, a dealer said. At 6pm, the ringgit was…
LONDON, Jan 10 ― British retailers suffered their worst Christmas since the depths of the financial crisis a decade ago as cautious customers forced high street stores such as John Lewis and Debenhams to slash prices to shift stock. With Britain…
KUCHING: Greater concerns over the weak economic landscape has dragged down optimism among corporate and Small and Medium Enterprises (SMEs) to the lowest level since the inception of the RAM Business Confidence Index (RAM BCI) survey two years ago. The latest survey conducted by RAM Holdings Bhd and RAM Credit Information Sdn Bhd among 3,500 […]
PETALING JAYA: Malaysian businesses are displaying less optimistic sentiment on prospects for the next six months as the RAM Business Confidence Index (RAM BCI) fell to its lowest level since its inception two year ago.
RAM said in a statement today that the corporate and the SME indices of the RAM BCI declined to 55.1 and 51.0 respectively, although the reading above 50.0 still denotes positive sentiment.
The RAM BCI is a comprehensive survey jointly conducted by RAM Holdings Bhd and RAM Credit Information Sdn Bhd, on business sentiment in Malaysia. Released quarterly, the index is based on data from a survey of close to 3,500 SMEs and corporates across five main industry segments respectively.
The cooler sentiment is attributable predominantly to the weak economic prospects in the next six months, with a number of firms citing this as the main challenge, rising to 41.2% and 41% both corporate and SME segments.
Decelerating domestic growth, uncertain global demand and investment activities and a lack of positive catalysts, including the relatively neutral Budget 2019, all play a part in the generally weaker business sentiment on the next six months.
On a sectoral basic, the construction sector appeared the least bullish with the SME sector recording a reading at 49.7 while the corporate sector declined for the third time in a row to 53.0.
Without any new growth catalyst amid the property overhang, plus the shelving of new big-ticket infrastructure projects, it is not surprising that the construction sub-indices have hit record lows, RAM said.
Another sector that showed pessimism in the Q1-Q2 2019 survey is SME retail as its performance outlook slipped back into negative territory after a brief expansionary momentum that had been aided by the tax-free window from June to August 2018.
“Faced with uncertain global and domestic economic prospects, consumers are once again more prudent with their spending, leading to weaker sentiment on retail consumption in 2019,” it added.
On the back of weaker prospects, the firms are also holding back from capacity building with the sub-indices tracking corporate business expansion, capital investment and hiring recording a fall in three consecutive surveys.
Likewise, the capacity-building sub-indices for SMEs pulled back from the last survey and remain below those of corporates.
RAM noted that firms’ expressed reticence on capacity building remains the most prominent downside risk, as it could weigh on the momentum of economic growth in 2019 and potential economic output over the longer run. This is particularly true in respect of SMEs, which are more vulnerable and sensitive to immediate economic challenges.
“That said, more guidance on future economic policies that will shape the overall business environment will be crucial to building business confidence among firms, potentially being the game changer for a more resilient growth trajectory this year,” it added.